1. Field of the Invention
This invention relates in general to computer-implemented financial systems, and in particular to an improved automated securities trading system.
2. Description of Related Art
Computer-implemented securities trading systems are well known in the art. One such system is that disclosed U.S. Pat. No. 4,674,044, issued to Kalmus et al., entitled "Automated Securities Trading System", and incorporated by reference herein. These computer-implemented securities trading systems obtain bid and asked prices for securities from a database and then execute trades based on the bid and asked prices. However, there is generally still a human component to such systems.
For example, most financial markets also employ one or more market makers called "specialists." These specialists fill customer orders from the specialist's inventory position if there are no matches for the customer orders in the open market. In the prior art, the specialist function is not automated, but is performed by a firm or individual. Thus, there is a need in the art for an improved computer-implemented trading system that includes an automated specialist function to create a market for the securities traded and to lessen the volatility of smaller securities markets.